When you find yourself in a high interest rate fixed mortgage the task of lowering your interest rate can seem daunting. Banks will try to prevent you from paying out these juicy high interest rate mortgages. One significant barrier to exit your mortgage is INTEREST RATE DIFFERENTIAL or IRD.

IRD is a penalty that allows your disgruntled lender to charge you the interest they will loose on your mortgage when you pay it out for a lower rate elsewhere.

Working with a Mortgage Broker will provide you with access to some tricks to reduce these penalties and keep your mortgage lender in check when they are calculating penalties. On average we are able to save our clients 17% of their quoted penalty.

Banks do not have your best interest in mind when they calculate your mortgage rate or penalty to break that mortgage. Banks are profit centers that profit only by making a spread on the difference between the rate of interest that they pay you for your deposits and the rate of  interest they charge you to borrow money. The more money you have on deposit with Bank, the more valuable you are as a client, and therefore the better the interest rate you are offered on your debts. With a Mortgage Broker every client has access to those great rates.

The calculator below can calculate the penalty to break your current mortgage and the savings associated with paying that penalty and switching to a new mortgage.

CALCULATOR COMING SOON!

The results can be a bit confusing so if you want to speak to someone just use the live chat feature on our site of give us a call.